All things STOCKS

#16,602
#16,602
Forbes dot com:

Super Micro Computer stock (NASDAQ: SMCI) fell by about 6% in Tuesday’s trading and remains down 54% over the past month amid significant corporate governance concerns and questions about the company’s financial reporting. Hindenburg Research published a report highlighting several red flags in SMCI’s accounting practices. Moreover, the company delayed filing its annual financial statement in August for the last fiscal year, putting Super Micro out of compliance with Nasdaq exchange listing rules, which require timely filings with the U.S. Securities and Exchange Commission. Now, Super Micro faces a critical deadline on November 16th to either file the delayed report or submit a plan for regaining compliance. If it fails to do so, the company risks being delisted from the Nasdaq. However, there’s a big hurdle here. Super Micro’s auditor Ernst & Young resigned in October, noting that it was unwilling to be associated with the financial statements prepared by the company and that the company will likely need to find a new auditor to be able to file an audited 10-K filing or to effectively convince the SEC that it is on the job.

SMCI stock has generated better returns than the broader market in each of the last 3 years Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023.
 
#16,603
#16,603
Thunder Good-Oil said:
Forbes dot com:

Super Micro Computer stock (NASDAQ: SMCI) fell by about 6% in Tuesday’s trading and remains down 54% over the past month amid significant corporate governance concerns and questions about the company’s financial reporting. Hindenburg Research published a report highlighting several red flags in SMCI’s accounting practices. Moreover, the company delayed filing its annual financial statement in August for the last fiscal year, putting Super Micro out of compliance with Nasdaq exchange listing rules, which require timely filings with the U.S. Securities and Exchange Commission. Now, Super Micro faces a critical deadline on November 16th to either file the delayed report or submit a plan for regaining compliance. If it fails to do so, the company risks being delisted from the Nasdaq. However, there’s a big hurdle here. Super Micro’s auditor Ernst & Young resigned in October, noting that it was unwilling to be associated with the financial statements prepared by the company and that the company will likely need to find a new auditor to be able to file an audited 10-K filing or to effectively convince the SEC that it is on the job.

SMCI stock has generated better returns than the broader market in each of the last 3 years Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023.
Click to expand...

11/22/2024 $17 SMCI puts:
$2.12/$2.15

SMCI: $17.75
SMCI the last week in October: $50
 
#16,604
#16,604
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
 
#16,608
#16,608
Jax_Vol said:
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
Click to expand...

Let it play out and buy best of breed.

Looking strongly at ABBV here.

I only have ISRG in medical so I know Im underweighted there...
 
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#16,609
#16,609
Jax_Vol said:
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
Click to expand...

HHS is huge. Something like $1.5 trillion. A quarter of federal spending. RFK, jr is kind of an odd choice. But I don’t know how much influence he could have. Elon and Viv will be the disrupters. I doubt that they can squeeze much out of healthcare providers for renoguated Medicare. I think that RFK, jr’s anti-vax stance won’t have much effect. But pharma will probably be under pressure for a while until things clear up.

Defense is hard to call. We spend almost $1T which is 3x China and dwarfs the rest of the world. Trump will pressure allies to ramp up their contributions, so perhaps domestic military cuts will be offset a good bit by Europe, Japan, the ME buying more from the US based defense contractors.

I saw that PLTR was up a lot this morning. They have a lot of revenue per employee and are diversifying away from defense.

This might be a wild ride. At least until things settle down and it becomes clearer what DOGE can accomplish. The government contractors could do well if government shrinks and the commercial sector gets the dollars. Like when NASA shrunk and Space-X and Bezos ended up being more efficient alternatives.
 
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#16,611
#16,611
The 11/22 $17 SMCI puts probably go up or down 50% on Monday (assuming no news drops before markets close today). The NASDAQ filing deadline is tomorrow. If they miss I don’t know what the timeline would be to be delisted. Feels like a coin toss. It’s “trading”, not “investing”.
 
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